Irwin/McGraw-Hill 1 What is Job Design? Job design is the function of specifying the work activities of an individual or group in an organizational setting. The objective of job design is to develop jobs that meet the requirements of the organization and its technology and that satisfy the jobholder’s personal and individual requirements.

Irwin/McGraw-Hill 2 Decisions in Job Design Ultimate Job Structure Who Mental and physical characteristics of the work force What Tasks to be performed Where Geographic locale of the organization; location of work areas When Time of day; time of occurrence in the work flow Why Organizational rationale for the job; object- ives and mot- ivation of the worker How Method of performance and motivation

Irwin/McGraw-Hill 3 Trends in Job Design 1. Quality control as part of the worker's job 2. Cross-training workers to perform multiskilled jobs 3. Employee involvement and team approaches to designing and organizing work 4. "Informating" ordinary workers through telecommunication networks and computers 5. Extensive use of temporary workers 6. Automation of heavy manual work 7. Organizational commitment to providing meaningful and rewarding jobs for all employees

Irwin/McGraw-Hill 4 Behavioral Considerations in Job Design Degree of Specialization Job Enrichment (vs. Enlargement)

Irwin/McGraw-Hill 5 Sociotechnical Systems Process Technology Needs Worker/ Group Needs Skill Variety Feedback Task Identity Task Autonomy

Irwin/McGraw-Hill 6 Physical Considerations Attitude isn’t everything Can a worker perform physically? Work Physiology Sets work-rest cycles based on energy expenditure

Irwin/McGraw-Hill 7 Work Methods Workers Interacting with Other Workers A Production Process Worker at a Fixed Workplace Worker Interacting with Equipment Ultimate Job Design

Irwin/McGraw-Hill 8 Operations Strategy/Process Analysis Work Measurement: Why do We Need to Set Work Standards? 1. To schedule work and allocate capacity 2. To provide an objective basis for motivating the workforce and measuring their performance 3. To bid for new contracts and to evaluate performance on existing ones 4. To provide benchmarks for improvement

Irwin/McGraw-Hill 9 Time Study: The Search for Measurable Job Elements Short in duration--but long enough to time Separate worker actions from machine actions Define any delays by the operator or equipment into separate elements

Irwin/McGraw-Hill 10 Determining Standard Times Calculate them yourself Use elemental standard-time data Use pre-determined motion-time data systems

Irwin/McGraw-Hill 11 Time Study Example Problem You want to determine the standard time for a job. The employee selected for the time study has produced 20 units of product in 8 working hours. Your observations made the employee nervous and you estimate that the employee worked about 10 percent faster than what is a normal pace for the job. Allowances for the job represent 25 percent of the normal time. Question: What are the normal and standard times for this job?

Irwin/McGraw-Hill 12 Work Sampling Use inference to make statements about work activity based on a sample of the activity. Output of Work Sampling: Performance Measurement Time Standards

Irwin/McGraw-Hill 13 Advantage of Work Sampling over Time Study Several work sampling studies may be conducted simultaneously by one observer. The study may be temporarily delayed at any time. The observer need not be a trained analyst unless determining a time standard. No timing devices are required. Work of a long cycle time may be studied with a fewer observer hours. Minimizes effects of short-period variations and influence by the operator or worker.

Irwin/McGraw-Hill 14 Basic Compensation Systems Hourly Pay Straight Salary Piece Rate Commissions

Irwin/McGraw-Hill 15 Financial Incentive Plans Individual and Small-Group Plans Output measures Quality measures Pay for knowledge Organization-wide Plans Profit sharing Gainsharing Bonus based on controllable costs or units of output May be part of participative management

Irwin/McGraw-Hill 16 Scanlon Plan Basic Elements The ratio Standard for judging business performance The bonus Depends on reduction in costs below the preset ratio The production committee The screening committee

Irwin/McGraw-Hill 17 Levi’s Jeans Case Moved away from piece rates. Team concept put in place in their factories. Brought in consultants to “reengineer” team process. Questions What went wrong with the team process? What should have been done differently? Was the final result inevitable?

Irwin/McGraw-Hill 18 Business Process Reengineering “Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service, and speed.” Source: Hammer, Michael and James Champy (1993) Reengineering the Corporation: A Manifesto for Business Revolution. New York: Harper

Irwin/McGraw-Hill 19 Key Words Fundamental Why do we do what we do? Radical Business reinvention vs. business improvement Dramatic Reengineering should be brought in “when a need exists for heavy blasting.” Business Process a collection of activities that takes inputs and creates an output that is of value to a customer.

Business Process Reengineering Senior Management Middle Management Supervisory Management Workers Decide What Business We Are In Eliminate An Existing Process Replace An Existing Process Improve An Existing Process ContinuousImprovementOrReengineering?

Irwin/McGraw-Hill 21 Principles of Reengineering Organize around outcomes, not tasks Put the decision point where the work is performed, and build control into the process Merge information-processing work into the work that produces the information Treat geographically dispersed resources as though they were centralized Link parallel activities instead of integrating their results

Irwin/McGraw-Hill 22 The Reengineering Process (1 of 2) 1. State a Case for Action 2. Identify the Process for Reengineering 3. Evaluate Enablers of Reengineering

Irwin/McGraw-Hill Create a New Process Design 5. Understand the Current Process (high level only) 6. Implement the Reengineered Process The Reengineering Process (2 of 2)

Irwin/McGraw-Hill 24 Reengineering & Continuous Improvement Source: Reprinted by permission of Harvard Business School Press from Process Innovation Reengineering Work Through Information Technology by Thomas H. Davenport. Boston: 1993 p. 51. Copyright 1993 by The President and Fellows of Harvard College.

Irwin/McGraw-Hill 25 Integrating Reengineering and Continuous Improvement Sequence Change Initiatives Create a Portfolio of Process Change Programs Limit the Scope of Work Design Undertake Improvement through Innovation

Irwin/McGraw-Hill 26 A System of Process Improvement: Continuous Improvement & Reengineering time Productivity

Irwin/McGraw-Hill 27 Re-engineering: Current Situation B Specialization Lots of handoffs (“white space”) Lots of opportunity for defects A C D E F G

Irwin/McGraw-Hill 28 The Re-engineered Process Ownership Reduced handoffs Reduced cycle time and defects F A C G BD E

Irwin/McGraw-Hill 29 Why is it that we accept a 4 week wait to see a doctor, but in the mortgage business, the consumer dictates the closing dates to the mortgage company? The Reengineering Process

Irwin/McGraw-Hill 30 Six Sigma: DMAIC vs. DMADV Define Measure Analyze Design Validate Improve Control Continuous ImprovementReengineering